NEW YORK, April 11, 2017 /PRNewswire/ -- The Wall Street Journal today published an article suggesting there was an alleged FBI investigation in 2014 -- three years ago -- with respect to AmTrust's accounting practices initiated by complaints made by short sellers. AmTrust is not aware of any such investigation, nor for that matter, has it ever been contacted by the FBI with respect to such an investigation. Further, AmTrust is not aware of any special examination by the New York Department of Financial Services, other than examinations conducted in connection with AmTrust's 2014 Tower transaction, which the Department approved.

AmTrust has no direct knowledge of any of the individuals, named or unnamed, referenced in the article and is certainly not aware that they have any credibility with respect to their understanding of AmTrust or its regulators. Immediately following AmTrust's filing of its 2016 Form 10-K, and the unqualified audit opinion issued by KPMG, the Wall Street Journal contacted AmTrust concerning a possible article in which it seemed that AmTrust would be a part. We have been as responsive as possible to the Wall Street Journal during this period. Many of the questions from the Wall Street Journal related to the disproved short seller themes about AmTrust that have been used unsuccessfully by shorts and their confederates for the past several years. There is nothing in today's Wall Street Journal article in terms of the company's operations or financial results that is different from these old, recycled short seller themes.

In light of its observance of the Passover holiday over the next two days, AmTrust will have no further comment at this time.

I am surprised that it took this long for Amtrust's problems to come to surface.

Amtrust had been growing very aggressively in recent years by charging low (sometimes ridiculously low) rates and buying troubled insurers.

I would not be speculating on this stock until seeing regulators' responses for more needed reserve increases. It will be much more difficult for Amtrust to write new policies or hang onto their renewals if it gets downgraded even if it does not get into conservatorship.

Either way, if you're an employee of the company or you have potentially damning information and you read something like the article in the Wall Street Journal, you may want to consider turning state's evidence and coming forward with what you know.

I would say that looking at an aggregate triangle in the current market is pretty dangerous from a stock picker's perspective. The industry is experiencing adverse results in Auto and a lot of our Auto triangles would show the same patterns. If the same pattern crosses multiple lines including first party losses, then you may have a point.